Financial freedom: act now be free later
What is financial freedom? Moneyfit.org defines financial freedom as having enough savings, financial investments, and cash on hand to afford the lifestyle we want for ourselves and our families. The definition will vary depending on the individual and their stage in life.
Many people aspire to achieve financial independence. Many people have done it, and many others have not. Of course, this requires sacrifice and hard work. The phrase "sick first, have fun later" is probably the best way to describe this concept of financial freedom.
Someone with financial freedom is said to have more than enough assets and even strives to grow in order to finance their daily needs. Furthermore, people who have achieved financial independence will not feel reliant on others to meet their financial needs.
The hard work that we have planted has resulted in financial freedom. For example, refraining from purchasing something that is not truly necessary, being aware of the needs in old age, and understanding when they need to develop their assets.
To achieve financial freedom, you must amass enough wealth to generate enough income to cover your living expenses once you stop working. Unfortunately, many people do not achieve this situation.
"Financial freedom doesn't mean, To be free from money troubles. Financial freedom actually means, Freedom from obsession of dollar bills. When the mind learns to distinguish, Between luxury and actual necessity. That's the beginning of financial freedom, That's the beginning of economic stability. Modern economy is the antithesis of sustainability, Where financial freedom is bait to the suckers. Actual necessities of life are very little, But first you gotta break free from the predators. We gotta wake up from materialism to be free. Or else, scheme after scheme we'll be ever unfree.” ― Abhijit Naskar, Ingan Impossible: Handbook of Hatebusting"
How can I achieve financial freedom?
1. Recognize Current Financial Situations and Needs
Knowing your financial situation is the first step toward financial freedom. How much is the fixed income, how much are the monthly routine expenses, and whether or not there is debt? If your monthly obligations exceed your monthly income, you have not yet attained the concept of financial freedom.
2. Plan your finances carefully.
The following step is to conduct thorough financial planning. The need to manage finances correctly, which determines how long a person's financial freedom can last. You must be able to wisely allocate each expense item. For example, what percentage is set aside to finance daily expenses, what percentage is set aside for savings and emergency funds, and what percentage is set aside to pay any installments?
3. Have Enough Savings
Saving enough money is critical to achieving the concept of financial freedom because these funds will be very useful in the future. You can use your bank's auto-debit feature to make it a habit to save at the end of each month. For the amount, you can use the above-mentioned formula for calculating the 4-3-2-1 salary. Of course, setting aside more than 20% of your monthly income for savings is preferable, as long as your basic needs are met.
You should also make investments that are tailored to your risk profile if you want to achieve financial freedom. If you are new to investing, start with low-risk investments such as mutual funds or gold. The investment seeks to develop assets, both real and visible, as well as financial investments. As a result, the benefits will be felt over the next few years.
Financial lesson: have a plan
Make a strategy. Create a financial roadmap to achieve financial independence. Working with an experienced individual or company such as Kotini & Kotini to develop a plan to ensure that you and your valuable assets are properly covered, that your savings are invested in an optimal portfolio of local and global investments, and that you understand what you need to do to achieve financial freedom in retirement makes sense.
Do you need assistance?
Kotini & Kotini